The  inclusion  of  shipping  in  the  EU  Emissions  Trading  System  (ETS),  which  European  lawmakers  have recently  supported,  has  ignored  calls  from  INTERCARGO  and  the  industry  as  a  whole,  for  collaboration  and  adapted  solutions  to achieve  the  much  needed  reduction  in  Greenhouse  Gas  (GHG)  emissions  for  greener shipping.  Far from being a meaningful contribution towards meeting those objectives, this moveis,  instead, a confirmation of how distanced the thinking of European decision-makers is from the global dimensions of the shipping sector.

Global  challenges  and  problems  require  global  handling  and  solutions:  The  International  Maritime  Organization  (IMO)  works  to  ensure  a  level  playing  field  globally unlike  European  or  other  regional  regulations. The latter have proven ineffective, as they create distortions and multi-tier markets, or even trade tensions.  A thorough impact assessment on the inclusion of shipping in EU ETS is    imperative

The  EU  ETS  risks  causing  trade  retaliation,  an  increase  in  emissions  and  the  decline  of  European  ports. There is a danger that trans-shipment centres will be set up just outside EU borders and served by large, efficient bulk vessels. Smaller, less GHG efficient ships will then transport cargoes to EU ports which will lose efficiencies gained through technology and size. In short, carbon leakage will take place.

The challenge to decarbonise shipping is enormous. IMO’s initial strategy and the adoption of the GHG Roadmap focuses on the implementation of short, medium, and long-term measures. Shipowners have responded  responsibly  to  the  challenge  by  putting  forward  the  USD  5bn  R&D  fund  proposal  as  a  much  needed  longer-term complementary contribution to set in motion the chain of innovation, investment, production, and adoption by the marketplace of innovative technologies and energy carriers.

“The industry needs fuel/energy suppliers, engine manufacturers, shipbuilders and charterers to achieve IMO’s objectives,” said INTERCARGO Secretary General Kostas Gkonis. “Bringing these key stakeholders aboard  has  arguably  been  the  greatest  challenge  for  IMO.  One  more  challenge  has  now  been  added:  changing  the  thinking  of  narrow-minded  regional  decision-makers  and  persuading  them  to  see  the  broader  picture.  The  inclusion  of  shipping  in  EU  ETS  is  basically  a  money  collection  mechanism,  fundamentally disconnected from the work at IMO, and risks undermining a global GHG solution.”

Source www.intercargo.org